The advances of non-banking financial companies showed strong growth in the provisional data for the second quarter released by some firms.
The trend was seen across Bajaj Finance Ltd. and Mahindra & Mahindra Financial Services Ltd., according to an overview of their provisional figures.
Bajaj Finance's new loans booked stood at 85.3 lakh as of Sept. 30, up 26% year-on-year.
For Mahindra & Mahindra, the disbursements stood at approximately Rs 13,300 crore, a growth of 13% year-on-year. Half-yearly, this figure stood at approximately Rs 25,500 crore, leading to a growth of 20% year-on-year.
However, other metrics varied.
Bajaj Finance
The lender's customer franchise stood at 7.65 crore as of Sept. 30, up 21% year-on-year from the previous 6.29 crore. The deposit book grew 39% year-on-year to Rs 54,800 crore.
Its assets under management stood at Rs 2.9 lakh crore, up 33% year-on-year.
The lender's liquidity position remains strong, according to the exchange filing. Its consolidated net liquidity surplus stood at approximately Rs 11,400 crore, according to the Q2 provisional figures.
Mahindra & Mahindra Financial Services
The lender's healthy disbursements, along with its "pre-festive dealer advance," have led to growth in its business assets. For the quarter under consideration, they stood at approximately Rs 93,600 crore, up almost 8% quarter-on-quarter.
However, the collection efficiency saw only a marginal improvement of 100 basis points month-on-month. It stood at 97% for September, compared with 96% for August.
"The company continued to enjoy a comfortable liquidity position on its balance sheet, with a liquidity chest of over 2.5 months," it said in the exchange filing.
BQ Prime previously reported that the low interest environment and lags in monetary policy transmission have led to an increased reliance on bank borrowings by NBFCs.
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